A cost-saving merger between Ashford and St Peter's Hospital Trust and the Royal Surrey in Guildford has cleared a significant hurdle.
Both chief executives spoke of their disappointment six months ago when their plan was called in over concerns it would be anti-competitive.
March 2015: St Peter's board approves merger proposals to move forward
It was the second time Ashford and St Peter's plans to find a hospital partner had been blocked.
Oct 2012: Epsom Hospital merger with Ashford and St Peter's called-off
The Competition and Markets Authority today cleared the merger but will prepare a final report by October 7.
The boss of Ashford and St Peter's Hospital, itself the product of a merger, chief executive Suzanne Rankin said in a statement: "We are really pleased to see that the CMA has granted provisional clearance for the two trusts to merge.
"Our proposal to merge is based around securing a stronger future for our two organisations which will allow us to deliver a number of important patient benefits, including more consultant care at weekends and increased investment in facilities and technology."
Nick Moberley, chief executive of the Royal Surrey, said: "While there is still a lot of hard work to do, today’s announcement marks a very positive step forward in our plans.
"Subject to approval by both boards to move to the next stage, we will embark on a wide engagement campaign to ensure people understand what these proposals mean for both patients and staff, and to hear their views.”
A merger would save an estimated £10m to £20m according to the trusts but a staff survey at Royal Surrey show concerns over the move from consultants.
The earliest a merger could take place would be summer next year.
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